“The minimum wage has been around for nearly twenty years. There is no excuse for employers to claim ignorance, or to blame problems on admin errors.

“Increasing investment in enforcement is clearly paying off. This is a huge amount of cash owed to low-paid workers. But we know there are more wage-dodging employers out there.

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Argos was acquired by Sainsbury's in 2016

“TUC research suggests there are at least a quarter of a million workers being cheated out of the minimum wage. We need to see strong unions in every workplace to stop these abuses from happening.”

In a letter to staff, John Rogers, chief executive of Argos, said: “Sainsbury’s prides itself on being a trusted brand where people love to work and I was therefore very disappointed to hear this, and launched an immediate investigation.”

Rogers said Sainsbury’s was also planning to raise wages for the lowest-paid Argos staff aged over 25 from £7.20 to £7.66 an hour, and extend a discount on Sainsbury’s shopping to them. The National Living Wage, the legal minimum for over 25s, is now £7.50.

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Business Minister Margot James said paying less the legal minimum was 'short-changing ordinary working people and undercutting honest employers'

Business Minister Margot James said: “It is against the law to pay workers less than legal minimum wage rates, short-changing ordinary working people and undercutting honest employers.

“Today’s naming round identifies a record £2m of back pay for workers and sends the clear message to employers that the government will come down hard on those who break the law.”

Melissa Tatton, Director at HMRC said: “HMRC is committed to getting money back into the pockets of underpaid workers, and continues to crack down on employers who ignore the law.

“Those not paying workers the National Minimum or Living Wage can expect to face the consequences.”